Thursday, August 4, 2011

Smackdown

Wow, what can one say about a day like today in the markets. Today was the ninth biggest down day in market history. All my long term mutual funds were down by 4.5 pct or more. I got stopped out of AAPL. My NLY took it on the chin although was down "only" 2.68%. I'm still trying to figure out what the hell is going on but I suspect it may be related to Trichet and EU leaders seemingly purposeful ignorance of the signficance of the problems in the Eurozone. I didn't expect the problems to be this bad but today's action proves that there is something seriously wrong in the Eurozone and the world economy in general. Price is truth and markets dropped the most today since 2008. My only conclusion is that we are headed lower perhaps to 1170 which is the target of the head and shoulders formation the market has been in for the past few months. Head was at 1370, neckline 1270, target 1170 on the S&P. It looks like i was a little early in nibbling yesterday as i got smacked down real quick. I am hanging in there though and not selling as i feel we are closer to a bottom than the top. I am looking to add to my positions especially in the hugely beaten down foreign stocks and small cap space but I will let the market tell me when to get back in. I ain't trying to catch this falling knife again!